Visa recently shared the results of its annual global Growth Corporates Working Capital Index, showcasing a significant increase in working capital efficiency. The study, which surveyed 1,300 CFOs and Treasurers from various industries and countries, focused on organizations generating between $50 million and $1 billion in annual revenue, known as “Growth Corporates.”
One of the key highlights from the Index was the substantial growth in the adoption of working capital solutions, with an 81% adoption rate in 2024. Top-performing companies were able to save an average of $11 million in interest and fees, marking a 300% increase in efficiency year over year.
Virtual cards emerged as a popular solution among surveyed Growth Corporates, with a 32% increase in usage compared to the previous year. These virtual cards offer flexible and on-demand working capital solutions, allowing companies to access funds as needed. Companies that utilized virtual card solutions reported benefits such as reduced Days Payable Outstanding (DPO), improved cash flow predictability, and early supplier payments.
The study also revealed that CFOs and Treasurers of Growth Corporates are seeking relationship-based banking and personalized working capital solutions tailored to their specific industry and business needs. Many respondents expressed challenges with lengthy approval processes and uncertainty about approval outcomes, emphasizing the importance of customized solutions designed by industry experts.
Additionally, the Index highlighted that top-performing companies were able to improve their working capital ratios, shorten cash conversion cycles, and invest in company assets and organic growth. Developing markets and specific industries such as agriculture, healthcare, and retail also experienced significant gains in working capital efficiency.
Looking ahead, top-performing CFOs and Treasurers are three times more likely to continue using virtual cards as they seek to optimize cash flow and drive strategic growth. The demand for customized, industry-tailored financial products and solutions is on the rise among Growth Corporates, signaling a shift towards more flexible and on-demand financial services.
For more information about the Growth Corporates Working Capital Index and its key findings, you can visit Visa’s official website. Visa, a global leader in digital payments, aims to connect individuals, businesses, and economies through innovative, secure, and reliable payment solutions that foster global economic growth and inclusion.
In conclusion, the Growth Corporates Working Capital Index highlights the evolving financial needs of mid-sized organizations and the importance of tailored working capital solutions in driving strategic growth and efficiency. As companies continue to navigate changing market dynamics and economic challenges, access to flexible and customized financial products will be essential for sustained success and resilience.
